The rise of short-form videos, first popularised by TikTok and then copied in the form of YouTube Shorts and Instagram Reels, has been a game-changer in the social media landscape.
These no more than 60-second long videos are not only entertaining and highly addictive content but also a fantastic way to reach younger audiences. That is why marketers continue pouring money into this type of advertising.
According to data presented by OnlyAccounts.io, global ad spending on short-form video is expected to continue growing by a CAGR of 50% and hit more than $145bn by 2028.
Spending on Short-Form Video Ads to Grow by An Average of $11B Per Year
As a powerful tool to generate leads, increase brand awareness, and drive user engagement, short-form video has become a dominant force in the digital landscape. Its dynamic format, engaging content, and ability to reach audiences across different social media platforms have become a game changer for brands and companies worldwide, which spent billions of dollars on this type of advertising.
According to a Statista survey, global spending on short-form video ads has jumped twenty times in just five years, rising from $4.6bn in 2018 to over $88bn in 2023. This figure is expected to grow by 11% to $99.4bn this year, the highest value the market has ever seen. Still, that is nothing compared to ad spending projections in the following years.
According to a Statista forecast, global spending on short-form video ads will continue growing by an average of $11bn per year and hit $145.8bn in 2028, showing a massive 65% increase in five years. The average spending per user will also significantly increase, rising from $16.5 in 2023 to $23.6 in 2028.
With brands and companies spending billions of dollars on the format, short-form videos are expected to make up 60% of total spending on digital video advertising in 2028, up from 52% this year.
Americas to Become the World`s Largest Short-Form Video Market by 2028
In global comparison, most short-form video advertising revenue comes from Asia. Last year, Asian brands and companies spent $38.8bn on this type of advertising, $1.8bn more than American companies and almost three times more than European brands.
However, Statista expects the Americas to become the world`s largest short-form video market in the following years. By 2028, the total ad spending in the region is expected to grow by 13% and hit $68.2bn.
The Asian market will see an 8% growth in this period, resulting in total ad spending of $57.9bn. Statistics show the European market will also see bigger growth than Asia, with total ad spending growing by almost 10% to $16.6bn in 2028.
Interested in hearing leading global brands discuss subjects like this in person? Find out more about Digital Marketing World Forum (#DMWF) Europe, London, North America, and Singapore.